What do key data releases from China and Europe tell us this week?
In this week´s release spotlight we dive into some key data releases related to production and investments.
There is always some debate over the trustworthiness of Chinese official data, but now it starts to align more with other measures. Read our blog post on the subject for a good introduction: Is the Chinese economy flat-lining?
China’s investment in Real estate took the deepest hit by the Corona shock. Although there has been a rebound, it is not safe to say that investments will continue to grow to pre-corona levels since debt levels are high in many sectors.
The Manufacturing sector suffered the most after COVID-19 hit Poland, but has since then quickly rebounded.
Building permits tend to lead construction spending with approximately 3 months, and so although it only fell moderately during COVID-19 it might decline further still.
Purchases of motor vehicles are an important indicator for consumer sentiments for the future, and so it is worrying that this part of the retail trade rebound in Canada is largely absent.
One of Argentina’s most important exports, soybeans oil, increased slightly from its slump in April, and similarly can be said for the production of other oils and gas important for Argentina’s export income.
Among all the worries in the EU right now, unemployment is expected to hurt the most in the near future according to EU citizens.
Volume of orders from UK businesses fell way below normal in April, and is only just now starting to slowly return to normal. Hopefully, the latest restrictions won’t slow down the recovery.
Macron has regained some favorable ratings since it went tumbling down in 2017, and he still seems to have good support during the current crisis.
Compared to the earlier global crises of 2008 and 1999, the current COVID-shock is, although severe, showing much faster signs of recovery, more like a V than a U.